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The Relationship Of Parallel Treaty-Based International Arbitral Proceedings And Contract-Based Domestic Court Proceedings In Investment Treaty Disputes

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Chapter Summary

This chapter concerns a purportedly more traditional subject matter of competing jurisdictions: the relationship between international proceedings and local court proceedings. The emergence of the investment treaty regime and its impact upon contracts concluded between a foreign investor and a host State generates the need to examine this aspect more closely with regard to investment treaty proceedings and national court proceedings. The chapter explains how and what kind of jurisdictional conflicts arise between both legal systems in the framework of investment treaty arbitration. It examines the traditional means of avoidance and resolution of jurisdictional conflicts and the treaty provisions which are aimed at the resolution of such conflicts and it is shown that their capability to resolve emerging problems in this area of law is minimal. The chapter also examines the historical evolution of contractual forum selection clauses and their present impact under the investment treaty regime.

Keywords: foreign investor; host state; investment treaty arbitration; jurisdictional conflicts



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